Which of the following is a right for shareholders of common stock?

• A.the right to have the stock price increase
• B.the right to vote about important matters of the company
• C.the right to dividends
• D.both B and C

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Bubba buys one XYZ September 50 call at $7 and sells one XYZ September 60 call at $3. At that time, XYZ stock is at $55. Bubba has no other stock positions.
What is Bubba's maximum possible profit?

• A.$500
• B.$600
• C.$1,000
• D.unlimited

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Bubba has several accounts at a brokerage firm. Which of the following is not covered by SIPC?

• A.individual account in Bubba's name only
• B.commodities account in Bubba's name only
• C.joint account of Bubba and his wife
• D.joint account of Bubba and his son, Bubba, Jr.

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Bubba buys a $4 convertible preferred with a $50 par value that is exchangeable for common stock at 47.50. If the preferred stock is trading at 52 and the common stock at 51, Bubba determines that the preferred stock is:

• A.overpriced and will quickly decline
• B.selling at a 4% premium over conversion value
• C.underpriced and should rise quickly
• D.going to be called when the common stock price is $52

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In which of the following is not a case where a deed to a condominium qualifies as a security?

• A.the seller intends to profit
• B.there is management by someone other than the owner
• C.there is a time and space rental pool
• D.there is a 14-day owner usage provision

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